—W H I T E PA P E R

The future is energy-efficient,the future is data-driven

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T H E F U T U R E I S E N E R G Y- E F F I C I E N T—
Data, insights and expertise can improvethe energy efficiency of electrical rotating
equipment today
By 2050, global energy usage is projected to increase by almost 50%
compared to 2020. This includes an increase in energy consumption in theindustrial sector.1 At the time of writing, in the first quarter of 2022, thecost of energy – oil, gas and electricity – is particularly high, which has led
to significant extra energy costs for companies, and prices are expected toincrease.

As a result, global players, including businesses andgovernments, are looking for ways to achieve and enable
sustainable growth, and new regulations mandate improved
energy efficiency and a reduction in emissions. One of themost promising ways to achieve these goals is through the
adoption of energy-efficient technologies – reducing energy
consumption will benefit companies in terms of profitability
and sustainability.
At the moment, about 70 percent of the electricity
consumed by industry is used by electrical motors and there
are over 300 million industrial motor-driven systems inoperation. 2 Therefore, improving the efficiency of electrical
motor systems can play a significant role in helping theworld reduce CO2 emissions towards “net-zero” and reduce
waste. The measures needed to do this are practical,
realistic and effective, and they can reduce energy costs
for industry, too. In fact, it’s estimated that if all 300 million
motor systems were replaced with higher efficiency
equipment, we could reduce global electricity consumption
by up to 10%. 3
Thanks to the Internet of Things and digitalization, newtypes of digital services now offer even more opportunities
to reduce energy consumption. Using connected digitalsolutions, these services provide new data insights into
energy use which, combined with expertise, enable better
decisions about energy efficiency. With remote connections
and services, the status of equipment and even wholeprocesses can be checked at any time, from anywhere.
In addition, new flexible business models are emerging
that offer the potential for continuous energy optimization
services. For example, a trusted partner, like ABB Motion,
can share the responsibility for gradually improving theenergy efficiency of equipment over time, while maximizing
the value customers get from their assets.

T H E F U T U R E I S D ATA - D R I V E N

Energy efficiency in industry
In industries and regions which have a large and aging
installed base there are clearly good opportunities toimprove energy efficiency by modernizing the existing
electric motor systems. This is the case in the US, forexample, where over 60% of industrial motors are over
10 years old.4—
Total cost of ownership for motor systems

However, despite the potential benefits of modernizationand digital services, there are sometimes barriers thatprevent companies from investing. Some of these barriers
are listed below.
Cost: Companies often find it difficult to justify the upfront expenses. However, the costs, savings and benefits
should be evaluated for the whole life cycle. In most cases,
the majority of the cost of a motor system comes from theenergy used to run the motor throughout its working life,and energy efficiency measures can pay back in just a few
years. See the figure Total cost of ownership for motor
systems.
Downtime: Companies want to avoid the downtime
associated with modernization work. However,modernization also improves the reliability andperformance of the equipment, meaning that in
the long run, total downtime will be reduced.
Digital skills: Companies often feel that they do nothave the required in-house skills to make use of digitaltechnologies. This is where service partners are valuable:
they can provide both the technology and the skills needed
to improve the efficiency of a company's operations.
For a company with plants that are already in operation,
the starting point for improving energy efficiency is to do
an appraisal and assess the state of the installed equipment
to identify inefficiencies and opportunities. And for brand

1%

3%

Maintenance

Purchase

96%
Energynew, green-field operations, the focus should be onchoosing and installing energy-efficient solutions fromthe start. In both cases, the latest developments in digital
services and connected equipment also offer further
opportunities to continuously improve energy efficiency
now and in the future. In recognition of this, regulatorsand organizations around the world are setting andimplementing minimum efficiency performance standards(MEPS).

—
Replacing an old motor (IE1, 90 kW, running at full load) with a more efficient motor(IE4, 90 kW, running at full load) can significantly reduce losses and energy costs. 5

93%

6.77 kW

96.4%

3.36 kW

3.4%

3.41 kW

IE1: 93% efficiency

IE4: 96.4% efficiency

Benefits of changing from IE1 motor to
IE4 motor (90 kW, running at full load):3

more efficient

If electricity costs 0.1 kWh, then thesavings can be 2,688 EUR/year.

Losses

Losseslower losses

T H E F U T U R E I S E N E R G Y- E F F I C I E N T

4—
Sustainable operations through energy efficiency- a study with the University of St. Gallen
The issue of climate change has undeniably shaped the political andeconomic landscape in recent years. The global trend is moving towards
taking more action to mitigate global warming, as we are now, according to
the UN Emissions Gap Report released in October 2021, heading towards a
global temperature rise of 2.7°C by the end of this century. In particular, theinevitable problems linked with climate change have brought the topics ofsustainability and energy efficiency to people’s attention.

In order to make decisions towards sustainable operations,and to be able to shape desirable, human centeredsolutions, it is important to understand the pains andneeds of the people concerned.
A well proven tool to reveal these types of insights are
empathy interviews. In partnership with the University of
St. Gallen, a study was conducted with interviewees fromvarious industries around the world. The data from theinterviews was further enriched with an online survey.

—
Sustainability will become the most importantbusiness driver in the future. 6
Strongly
Disagree4Strongly
Agree57“If you look at young people today, the firstquestions they have are: “Is the company
sustainable?” and “How much does the company
respect the environment?”
Maintenance and Energy Manager, South America—
Sustainability is something that personally drives
me. 6Strongly
Disagree
4

Disagree6
Neutral12

Strongly
Agree
135

Disagree4
Neutral
14

Agree
30

Agree
41

T H E F U T U R E I S D ATA - D R I V E N—
The importance of energy efficiency related topics has increased within the last two years.6
COUNT

PERCENT

1 Strongly Disagree (1)

1

0.53%

2 (2)

5

2.66%

3 Neutral (3)

8

4.26%

4 (4)

34

18.09%

5 Strongly agree (5)13973.94%

I don’t know (6)

1

0.53%

“We could do 100 projects more that would
pay off, but we just lack good people. So
hard to find good people nowadays!”“Sustainability is more thana requirement to fulfil, it isa necessity to survive.”

Chief Technical Officer and Head of R&D, South Asia

Senior Project Manager, Metals, Northern Europe—
Outcome-based contracts could be a viable option for us to modernize our operations.6
COUNT

PERCENT

1 Strongly Disagree (1)

1

1.15%

2 (2)

0

0.00%

3 Neutral (3)1719.54%4 (4)2326.44%

5 Strongly agree (5)2124.14%

I don’t know (6)2528.74%

Putting digitalization into practice
A separate study by ABB of international business andand technology leaders on industrial transformation
showed that nearly 96 percent of decision-makers
believe digitalization is essential to sustainability.
However, the study also revealed that only 35 percent ofsurveyed companies have implemented Industrial IoT
solutions at scale – highlighting the potential forindustries to progress towards sustainability goals
through increased digitalization.7

Read more

5

T H E F U T U R E I S E N E R G Y- E F F I C I E N T

6Did you know?
While there is a lot of interest in sustainability, many companies
may not know that the technology needed to help them to meettheir energy efficiency goals and reduce their energy costs isalready available.
The technology exists to reduce motor system energy demand by
20% to 30%.8
The IEA estimates that industry accounts for more than 40% of
global greenhouse gas emissions.9
More than 1/2 of the world’s electricity is consumed by just
4 applications:10• electric motor systems• lighting• room air conditioners• residential refrigerators
Using energy-efficient motor systems in developing and emerging
economies could save 300 TWh and 200 Mt of CO2 emissions per yearby 2030. 11• That’s the same amount of energy that Mexico uses in a year. 12
Smart demand response could provide 185 GW of system flexibility
globally, the same as the electricity supply capacity of Australia and
Italy combined. This could save USD 270 billion of investment. 13—
Energy prices are expected to increase.

200 €/M Wh
175 €/M Wh
150 €/M Wh
125		€/M Wh
100 €/M Wh
75 €/M Wh
50 €/M Wh
25 €/M Wh
0 €/M Wh
Q1

Q2

Q3

Q4

Q1

2018
Brazil

Q2

Q3

Q4

Q1

Q2

2019
China

—
Source: Eurostat, IEA, CEIC, DG ENER computations.
The latest data for Brazil and Indonesia are not available. 14

Indonesia

Q3

Q4

2020
Korea

US

Q1
2021

EU

T H E F U T U R E I S D ATA - D R I V E N—
Making billions ofbetter decisions
Assess potential energy savings
As different countries and markets look for energy saving
opportunities, there will be an increasing need for accuratedata, which will span countless systems and businessprocesses. With the right expertise and advanced analytics,
this data can be brought together to give companies theknowledge and visibility they need to make better decisions
about the energy efficiency of their motor systems. It can
include data about motors, drives, entire powertrains andother connected equipment, as well as the equipment age
and condition, its power consumption and performance,
and the demands of the application, including load
characteristics.
In practice, there are several ways to gather and assess
data. Companies with connected equipment can performself-assessments using tools provided by expert partners,
like ABB, to calculate how much energy and money they
could save by modernizing their drives and motors. For
more in-depth assessments, expert partners can perform

audits and inspections on-site, and they can gather andmonitor data remotely and online from equipment
through secure cloud services.
Once enough relevant data has been gathered, then it canbe analyzed and assessed, and used to develop the best
long-term strategy for modernization, maintenance,energy savings and reductions in CO2 emissions.
Continuous monitoring can also be used to follow theperformance of motor systems and to identify areas withthe potential for improvements in energy efficiency.
However, analytical expertise and knowledge of motor
systems is required to put the results into context andturn them into actionable information. Since businesses
often do not have people with this kind of expertiseinhouse, they are likely to need the help of an expert
partner. This is why ABB Motion Services offers a range ofservices specifically designed to help businesses improvethe energy efficiency of their operations.

Digital transformation enables
sustainability
Around the world, decision-makers in
different industrial segments see that
digital solutions and the IoT will playa big role in enabling companies toimprove the sustainability of theiroperations. A recent study publishedby ABB, showed that:7• 94% agreed the Industrial IoT“enables better decisions, improving
overall sustainability"• 57% indicated the IoT has had
a “significant positive effect” onoperational decision-making• 38% of digitally mature companies
experienced top-line growth due tosustainability practices

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T H E F U T U R E I S E N E R G Y- E F F I C I E N T

ABB AbilityTM Life Cycle Assessments for motors and drives
ABB offers life cycle assessment services for both motors
and drives. An ABB AbilityTM Life Cycle Assessment collects acomprehensive overview of the life cycle state and operating
conditions of all the motors and/or drives in an entire plant.
ABB’s experts gather and analyze data, perform criticality
studies, and then compile an in-depth Life Cycle Assessment
report that details the status of the fleet, as well as
providing recommended maintenance and modernization
actions. This enables the plant owner to make more
informed decisions and plan for actions that will improvereliability and energy efficiency over the whole fleet life
cycle.
ABB Energy Appraisal
An ABB Energy Appraisal involves a one-time on-site visit by
an ABB engineer to gather data from the installed motors
and drives. The information gathered will include load
profiles and empirical data about energy consumption andprocess requirements. The engineer will then analyze thefindings to assess potential energy savings and reductions
in CO2 emissions, as well as the estimated payback time forany investments in motors and/or drives. They will also
prepare a clear, thorough report and an action plan that will
include detailed recommendations for suitable drives andmotors, including the correct parameters for optimal energy
efficiency. After new equipment is installed, the savings canalso be tracked and verified against the original predictions.

ABB Digital Powertrain Energy Appraisal
An ABB Digital Powertrain Energy Appraisal uses remoteconnections to collect real-time data from ABB AbilityTM
Smart Sensors installed on the powertrain. The data will be
automatically processed to provide data-driven insightsthat can be used to reduce the power consumption of thecompany's powertrains. Because the data is available in realtime, the customer can get both instant insights into theenergy use of their fleet, as well as accurate assessments ofthe energy saving potential of individual connected assets,
and it can also be used for online condition monitoring.
These deeper data insights enable better decision-making,and because the data is gathered over longer periods oftime, it can also be used to reveal hidden opportunities toimprove energy efficiency.
See the bigger picture in real time
Connected equipment and digital solutions make itmuch easier to obtain accurate and reliable data, anddigitalization will play an increasingly important role inenabling a more sustainable and energy-efficient future.
It will bring connected equipment, continuous remotemonitoring, real-time data and analytics together togive companies the insights they need to make the rightdecisions at the right time.
Another benefit of connected equipment and the IoT
is that it helps companies look beyond process silos.
In the past, motor systems have often been viewed andoptimized as individual processes. However, today’s
digital solutions can overcome this limitation to provide
a connected view of whole applications, giving companies
deeper insights into the performance and energy efficiencyof their operations overall.

—
96% of decisionmakers believe
digitalization
is essential tosustainability.7

T H E F U T U R E I S D ATA - D R I V E N—
ImplementingchangeEnergy-efficient solutions and services
Once the optimum areas to make energy savings andefficiency gains have been identified, then companies
can begin to implement energy-efficient solutions.
These measures can include adding variable speed
drives to existing motors, replacing low efficiency classmotors with higher efficiency motors, or othermodernizing actions, for example.
The implementation phase should be done together witha reliable partner that has experience in managing thiskind of project. They will install and commission new
equipment, and use insights from the data to ensure thefastest, most efficient and cost effective results. With
good data, modernizations can be implemented at allstages of the equipment life cycle. For example,
information about obsolescence and migration paths
can be used to plan and schedule retrofits and upgrades
to extend equipment operating life and avoid premature
scrapping.
Connected digital solutions can also be implemented
to provide better data about equipment and processes.
With this type of solution, digitally-enabled motors anddrives, and even whole powertrains, can be integrated
during modernization work and then connected securely
to cloud service solutions. These kinds of solutions canthen help identify new opportunities for improvement
and prioritize investments, as well as predicting
upcoming needs.
For example, continuous monitoring can be used to
improve maintenance planning, which, in turn, canimprove reliability, performance and energy efficiency.
Furthermore, expert partners can also analyze data
about existing configurations and motor usage toprovide solutions that will lead to improved energy
efficiency and performance over time.

—
ABB can help you to implement energy efficiency
improvements

Energy appraisals
and digital services
To identify and implement
energy-efficient actions

Installation andcommissioningof motors and drives
Seamless installationand commissioning withminimum downtime

MaintenanceTo ensure your equipment
operates reliably and as
expected

Modernizations
Retrofits, upgrades andmotor replacements

Utilization of old assets
and end-of-life services
Responsible recycling
and disposal of motors
and drives

9

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T H E F U T U R E I S E N E R G Y- E F F I C I E N T—
Mitigating
risks
Flexible business models
Various types of digital services have been available forsome time, including condition monitoring, and remotetechnical support and troubleshooting. Now, however,advances in digital technology, connectivity andprocessing power are making new types of outcomebased business models possible.
Instead of focusing on one issue, these new flexible
business models can be used to guarantee outcomes
and help companies mitigate their risks. This means thatthe customer and their service partner define and agree
targets and desired outcomes over time, and thenthe partner takes responsibility for delivering them.
For example, a service partner, like ABB, could takeresponsibility for ensuring an improved level of energy
efficiency.

Digital connectivity is a key component of outcome-based
services because it enables the services to be provided
continuously and remotely. Using secure, remote connections,the customer’s equipment and processes can be monitored
24/7 and advanced data analytics can be used to follow
performance, to ensure that agreed KPIs are met andto identify and prevent risks in advance. Flexible businessmodels like these are provided by ABB, including turnkey
solutions all delivered through ABB Motion OneCare
agreements.
Because outcome-based services involve deeper cooperation
between customers and their service partners, companies
will need to be more willing to share data than in the past a shift in mindset that is essential to getting the most fromdigitalization and remote services. Simply put, data lets
service partners provide a better quality of service. The
connected technology and service capabilities are alreadyavailable, so outcomes like constant energy savings andreductions in CO2 emissions are now within reach.

ABB Motion
OneCare agreement
With ABB Motion OneCare,
ABB partners with customers
to plan, coordinate and execute
equipment maintenance according
to the specific criticality and needs.
Each service agreement is tailored
to meet the customer’s long-term
objectives using expert knowledge,
standardized processes, andadvanced technologies.

T H E F U T U R E I S D ATA - D R I V E N

CUSTOMER CASE

Digitization enables higher uptime and better energy efficiency
The Waggeryd Cell AB pulp mill in Sweden has
used digitalization to continuously improve theenergy efficiency of their operations. The mill
installed 146 ABB Ability™ Smart Sensors togather accurate data from electric motors,
pumps and other equipment. ABB’s experts use
this data to monitor performance and toanalyze the mill’s status and energy efficiency,
and to prevent disturbances in advance. Aspart of the service, ABB also provides energy
reports, and these have enabled the mill toidentify and deal with inefficiencies, forexample, by replacing wrongly dimensioned
motors. The result is that Waggeryd Cell AB
has been able to reduce the risk of unplanned
downtime and improve their energy efficiency.

CUSTOMER CASE

Modernization services enable improved power output
Spanish company FIL-GENESIS turned to ABB
Motion Services to improve the efficiency of
their hydro-power plant. First, ABB's experts
assessed the installed base and technical datafrom the previous 10 years. Then, using theinsights gained, they identified the mosteffective modernization options, together withthe estimated payback time. As a result, FILGENESIS added an ACS880 variable speed drive
to the plant turbine together with specialised
Hydropack control software. The modernization
led to a 25% improvement in power output.
Because the river flow rate varies, themodernized system showed the significantly
improved performance at low flow rates,
compared to the previously fixed speed ofturbine operation.

11

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T H E F U T U R E I S E N E R G Y- E F F I C I E N T—
Conclusion
Although energy demand is predicted to grow, new energy
efficiency standards and regulations are having a positiveeffect on global energy consumption. For example, in an IEA
analysis of nine large countries and regions, including China,
the European Union and the United States, it was found that
efficiency standards had successfully helped to save about
1,500 TWh of electricity in 2018. 15 This was equivalent to thetotal electricity generated in 2018 in those countries by windand solar facilities. Furthermore, about 85% of companies
say they are now adopting IoT initiatives. 16 On average, theamount of connected equipment is growing by 33% every
year and it’s estimated that almost $7 trillion will be spent
on digital transformation between 2020 and 2023. 17, 178
As the adoption of digital technology accelerates, newtypes of services will proliferate to enable companies tomake better use of data, which will further enable them toimprove the energy efficiency of their operations.
ABB's range of digitally enabled solutions and life cycle
services can help companies to continuously optimise theenergy efficiency of their electrical rotating equipment, and
we also offer flexible business models that can help them
reduce electrical energy consumption and CO2 emissions.
As digitalization continues to progress, data-driven services
will make it easier for companies to achieve their energy
efficiency goals and outcome-based business models will
become more common.

(1)		

International Energy Outlook 2021, U.S. Energy Information Administration's (EIA), page 12; https://www.eia.gov/outlooks/ieo/(2)		

Fong, J.; F. Ferreira; A.M. Silva; and A.T. De Almeida, “IEC61800-9 System Standards as a Tool to Boost the Efficiency of Electric Motor Driven Systems 		
Worldwide,” Inventions, 2020, 5, 20, https://www.mdpi.com/2411-5134/5/2/20/htm

(3)		
		

Waide, P. and C.U. Brunner, “Energy-Efficiency Policy Opportunities for Electric Motor-Driven Systems,” International Energy Agency working paper,
Paris, 2011 page 13, 17, 118.

(4)		
		

Lawrence Berkeley National Laboratory, U.S. industrial and commercial motor system market assessment report,
Volume 1: characteristics of the installed base, January 2021, Page 67, permalink: https://escholarship.org/uc/item/42f631k3(5)		

Based on ABB measurements and calculations.

(6)		 ABB and University of St. Gallen, Energy Efficiency in Industry Report, Sustainable operations through energy efficiency, 2022;
		https://search.abb.com/library/Download.aspx?DocumentID=9AKK108466A9139&LanguageCode=en&DocumentPartId=&Action=Launch(7)		

ABB “Billions of Better Decisions” survey, August 2021; https://stories.ability.abb.com/better-decisions/introduction/(8)		

Electric Motor Systems Annex EMSA, https://www.iea-4e.org/emsa/(9)		 IEA (2021), Greenhouse Gas Emissions from Energy: Overview, IEA, Paris,
		https://www.iea.org/reports/greenhouse-gas-emissions-from-energy-overview/emissions-by-sector#abstract(10) Accelerating the Global Adoption of ENERGY-EFFICIENT ELECTRIC MOTORS AND MOTOR SYSTEMS, UN Environment, U4E Policy Guide, 2017, page 4; 		
https://united4efficiency.org/wp-content/uploads/2017/09/U4E-MotorGuide-201709-Final.pdf(11) 300TWh, 200 Mt, Accelerating the Global Adoption of ENERGY-EFFICIENT ELECTRIC MOTORS AND MOTOR SYSTEMS, UN Environment, U4E Policy Guide, 		
2017, page 15; https://united4efficiency.org/wp-content/uploads/2017/09/U4E-MotorGuide-201709-Final.pdf(12) IEA, Mexico Electricity Final consumption, https://www.iea.org/countries/mexico(13) IEA, Promoting digital demand-driven electricity networks, https://www.iea.org/areas-of-work/promoting-digital-demand-driven-electricity-networks(14) European Commission, Quarterly Report on European Electricity Markets, Market observatory for Energy, DG Energy, Volume 14, Issue 1, first quarter of 		2021, Page 46; https://energy.ec.europa.eu/system/files/2021-07/quarterly_report_on_european_electricity_markets_q1_2021_final_0.pdf(15) IEA, Energy Efficiency 2021, page 17; https://www.iea.org/reports/energy-efficiency-2021(16) https://stories.ability.abb.com/better-decisions/the-industrial-iot/(17) IEA, Energy Efficiency 2021, page 18; https://www.iea.org/reports/energy-efficiency-2021(18) https://stories.ability.abb.com/better-decisions/introduction/

T H E F U T U R E I S D ATA - D R I V E N

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